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The Markets
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The Markets
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Proactive UK has moved.
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Aerospace

SpaceX sues labor board to block case alleging Musk illegally fired employees critical of him

SpaceX has sued the National Labor Relations Board in response to accusations that the company fired employees critical of CEO Elon Musk.

The NLRB filed a complaint Wednesday alleging SpaceX illegally fired eight employees who called Musk "a distraction and embarrassment” and accused him of making sexist comments in a 2022 open letter to the company.

Now, SpaceX has filed a suit in a Brownsville, Texas federal court arguing that the complaint violates the US Constitution and thus should be blocked.

The company’s argument hinges on the fact that the NLRB case will be heard by an administrative judge and a five-member review board appointed by the US president. Federal law says that such judges and board members can only be fired for cause, rather than at will, which SpaceX argues is an unconstitutional structure.

This strategy worked for SpaceX once before. The company was able to stop a case from the Justice Department that accused the company of illegally refusing to hire refugees and asylum recipients, according to reports.

Notably, that victory also occurred in a Brownsville, Texas federal court.

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